The South African Revenue Service (Sars) this month published two updated guides.
Payment Rules Guide
The guide sets out the rules to which taxpayers must adhere when paying Sars. It took effect on 15 September 2023.
Taxpayers who bank with Bank Zero and African Bank can now make payments via electronic funds transfer (EFT) to the Sars public beneficiaries listed on the banking platforms.
But Bank Zero and African Bank are among the banks that cannot be paid via eFiling. Other banks that are not on the eFiling platform are Discovery Bank and TymeBank.
When initiating an eFiling payment, the guide says a payment request is automatically sent by to the bank once the client has released the payment on the platform. The client – the payer – will have to log into his or her banking platform to authorise the payment so that funds can be transferred to Sars. The revenue service warned that the payment is not effected until this authorisation is done, and skipping this step could result in delayed and late payments, which could result in penalties.
For EFT payments, Sars said its bank account numbers have been replaced with unique beneficiary account identities.
Payments can be made via EFT to the relevant Sars beneficiaries listed on the banking platforms.
The payment will be accepted only if the correct 19-digit payment reference number (PRN) is used. The unique PRN can be obtained on the relevant Sars payment form.
Sars said it will only recognise a payment once it has been received into the Sars bank account.
“Any payment received into the Sars bank account after the due date will be regarded as a late payment,” it said. “Taxpayers must ensure that payment is made before the cut-off time of the relative bank product used to ensure that funds will reflect in time on the Sars bank account.”
Cash deposits have been removed as an option for Customs and Excise clients. Clients are encouraged to make payments via EFT to the Sars public beneficiaries listed on the banking platform or eFiling.
Customs and Excise clients who are required to declare goods electronically must, whether or not registered for deferment of payment of duty, use eFiling when making a payment. Clients to whom such rules do not apply may use the alternative payment channels of internet banking.
Click here to download the Payment Rules Guide.
Income tax guide for trusts
Sars has published its Comprehensive Guide to the Income Tax Return for Trusts, which accounts for the information about beneficial ownership that must be submitted.
The changes on the updated ITR12T include:
- Simplified return for passive trusts. A less complex return is introduced for passive trusts with limited trust-specific activities during the assessment year. This includes dormant trusts with no ongoing activity but hold assets.
- Reporting distributions from other trusts. Additional questions have been incorporated into the Income Tax Return Wizard to determine whether the trust received vested amounts as a beneficiary of another trust. Trustees must provide information on the number of trusts from which these distributions were received. Clear details per trust must be provided in the tax return and maintained in the trust’s financial records.
- Information on donors/funders of the trust. The Income Tax Return Wizard now includes questions to identify whether certain amounts are deemed to have accrued to a donor/funder per section 7 during the assessment year. Donors or funders subject to section 7 provisions must declare trust income and capital gains attributed to them.
- Beneficial ownership declaration. The reporting of beneficial owners and individuals who may financially benefit from the trust’s proceeds is required.
- Mandatory supporting documents. All mandatory supporting documents, such as the trust instrument, annual financial statements, and resolutions/minutes of trustee meetings, must be uploaded and submitted with the trust tax return. The specific requirements depend on the type of trust.
Click here to download the Comprehensive Guide to the Income Tax return for Trusts.
